Are your personal or business money troubles out of control?

Are your personal or business money troubles out of control?

We offer straight-forward bankruptcy help. At Bankruptcy Maitland we know that the very thought of bankruptcy is scary, and if it becomes a reality it is totally nightmarish. We know that you are without a doubt feeling very overwhelmed, trapped or perhaps like you have zero possibilities left, therefore we want to help guide you through the process.

However, here’s the important thing – you’ve already endured the most difficult aspect of the process – you have actually taken that primary step towards placing your personal and/or business debts behind you and getting along with your life; you’ve found us.

The next step is undoubtedly to figure out if bankruptcy is truly right for you. There is definitely a few factors you will need to know long before making that decision so we recommend that you continue browsing across this site, it’s full of great information, or you can just grab the phone and phone us on 1300 818 575.

You Can Be 100 % Debt Free!

Can you imagine a future without bankers’ intimidating phone calls and looking forward to the post once again? There really are a couple of things you really should know before you make that complicated choice. First of all, the sooner you act then the more options you will have.

5 problems you should answer even before you declare yourself bankrupt.

There are 5 essential questions you will need to have an solution to before you declare bankruptcy. If you would like to know what they are, feel free to download our free e-book on the right hand side of this page. This e-book will address these big 5 questions specifically and give you peace of mind that you are doing the correct thing.

Get your FREE copy of the Big 5

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* We promise not to pester you with emails and phone calls when you apply for our free e-book. Really, we vow to only call you one time to see if we are able to help you even more and that’s it.

Your Insolvency Options

Is Going bankrupt my only choice?

No! There are a variety of options readily available to you. Here is a chart detailing the perks and downsides of the different debt alternatives offered. This diagram is certainly by no means an all-encompassing resource, but it will enable you to make a well-informed decision.

What is a Personal Insolvency Agreement?

This is adaptable agreement between you and your lenders. It is managed through a trustee who administers to just how much you have to pay and when etc. Once those conditions have been met you are then free to begin again with a clean slate.

What is a Debt Agreement?

A debt agreement enables a debtor to enter into an arrangement with their creditors to satisfy their debts without being made bankrupt.

You cant enter into a Debt Agreement if you have been bankrupt, or you are currently already in a debt agreement. There are also income restrictions, property value and unsecured debt value restrictions, If you wish to know more please get in touch with us on 1300 818 575.

Why do some business say Debt Agreements or Personal Insolvency Agreements

The reason you find plenty of expensive commercials on the TV in the Adelaide area inviting you to go for one of these alternatives is that there is lots of cash in it for the companies that administer them. You will notice, if you havent already, that every company has the tendency to give (biased) advice

according to the product that they offer. For instance, Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.

Should I consider a Debt Consolidation Loan?

There are the very occasional conditions where a debt consolidation loan is the best idea. Usually the issue with them is all it is really doing is bundling 5-15 various debts into one large debt. If you are battling to pay all your various loans now why do you think it will be magically easier to have one enormous bill. Just to make it all worse you typically have to pay up front for the pleasure of this choice. If you wish to get some clarification on this simply contact us on 1300 818 575 or go and download The Big 5 e-Book.

Bankruptcy and the Family Home

If I file for bankruptcy can I keep my house?

In many cases the answer is yes. If this is a serious issue for you then the best way to get the answer is to call us here at Bankruptcy Experts Adelaide on 1300 818 575 and once we have an understanding about your circumstances we can give you a clear picture over the phone. Practically everyone is emotionally connected to their house; its where the kids have grown up, its where you enjoy life on a day to day basis. People often think its an inescapable repercussion of bankruptcy and consequently they pressure themselves to the brink of madness to not lose the family home.

Will the bank let me keep my house even if I’m a bankrupt?

Why would the bank want bankrupt customers? Wouldnt they want to sell your house and not take the chance? Keep in mind – the bank that has kindly lent you the money for your house is making good money every month in interest from you, month in and month out. As long as you keep up to date with your payments then the bank wants you in there at all costs. However its not the banks call if a trustee decides that there is enough equity in your house the trustee will compel you and the bank to sell your home.

What factors would contribute to losing the house?

Equity! If you are up to date with your repayments then the most significant issue is equity. A trustee has a duty to gather as much money to help pay your bills once you go bankrupt. Equity is the ticket here. If you have $300,000 equity in your home and you have $100,000 worth of debt and no other way to pay the debt then the trustee sees your equity as a way to pay back your debt and so they will sell your house to repay the debt and give you whatever money remains from the sale.

How is equity determined?

This is the most important part of this process. Why? Put simply, if you get it wrong you will lose your house. There are a few things you need to know here. Firstly, your gut instinct or assumption about the true value of the property is probably generous. Most people think their house is worth more than it really is.

When you file for bankruptcy the trustee may ask how you established your price for the home. In some cases they will ask for more detail about your valuation, maybe a rates notice or a real estate agency’s valuation or a registered valuation. A simple strategy would be to look on www.realestate.com.au then click on the Sold tab on that website and search for recent house sales in your street or neighborhood. This will help you get some idea of the reality of the market right now. Remember, the valuation is based on a quick sale not a slick real estate agents marketing campaign. Understanding this step is critical, so get some advice before going ahead, call us on 1300 818 575.

What if my Partners name is on the Home Loan?

Often when a couple buy a home one income isnt enough to qualify for the loan, so the bank/lender will have both partners sign up for the loan. Once the house is purchased both names are on the mortgage from the bank and the title deed of the property as joint tenants.

Lets say Mick and Susie purchased a house 4 years ago for $400,000 with no deposit so their mortgage was also $400,000. Mick is a plumber and needs to go bankrupt but Susie has a good job teaching high school and doesnt need to go bankrupt.

Unfortunately, the house has not increased in value in the 4 years they have owned it and they also have only just managed to pay interest on the loan in that time so essentially they still have a $400,000 mortgage on a house worth $400,000.

Mick can then file for bankruptcy and as long as they keep paying the mortgage, rates etc. they can continue to keep the house for the 3 years Mick is bankrupt. This action will, in no way, affect Susies credit rating or force her to go bankrupt also. There is plenty to think about when it comes to houses and bankruptcy so if you have questions dont hesitate to phone us about your house on 1300 818 575.

What if My House has too much Equity what can I do?

If your house has plenty of equity and you are still drowning in debt, there are still some options available to you. In fact, this applies to vehicles or other assets you may have as well. What you cannot afford to do is assume that everything will be ok. It is the bankruptcy trustees job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be disastrous! Before you take your next step get some advice. We offer a free, initial consultation; just call us today on 1300 818 575.

Bankruptcy and Employment

Will my employer be advised?

Generally there is no reason for your employer to be advised of yourbankruptcy. In circumstances where you earn over the threshold amounts of income while you are bankrupt and you are required to make an income contribution, you organise those payments yourself, it doesnt go through your employer.

Who will know about my bankruptcy?

There are four groups of people that will learn that you are bankrupt.

Individuals that you tell

Your creditors or people you owe money to

Individuals that see your credit file while youre bankrupt. The only way this will happen is if you sign a privacy form for them to access your credit history. You only ever do this when you apply for a loan.

You will be listed on the National Insolvency Index on the internet somewhere. Its hard to find and people need to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Adelaide, we are completely conscious that there is still a stigma attached to bankruptcy. We understand this concern and we can help to ensure that if you declare yourself bankrupt that you dont need to go to court, get your name in the newspapers or be publicly made out to be a criminal or some kind of failure. We can help ensure that bankruptcy is quick and easy. In fact, the whole process will only take a few days. It makes it possible for the average person to get out of debt and on with their lives. For more detailed information about bankruptcy and your job, download The Big 5 e-book.

Will I lose my job if I file for bankruptcy?

The answer to the question is – in some cases. The trouble with some occupations isnt that you cant do the job any longer, its more an issue of professional bodies or associations that view bankruptcy in a dim light and can make it troublesome for you.

What we would certainly suggest is that you do your own research here. Do your homework and investigate that process prior to filing for bankruptcy because that may help you decide. Check if your job is on the chart below. If it is, we suggest talking to them personally and explaining your situation. A few organisations wont have a problem with your bankruptcy as long as it wasnt accompanied by shady or suspicious behaviour. If you think your employment may be impacted by your possible bankruptcy call us here at Bankruptcy Experts Adelaide on 1300 818 575.

Bankruptcy Income Thresholds

How much can I earn when I’m bankrupt?

The first thing you need to know about going bankrupt is that there is no restriction on how much you can earn. However, we will point out that your income is a significant consideration when working through whether you need to declare bankruptcy. The very first thing you have to know is just how much you can earn before you start paying back money to your creditors via your trustee.

Bankruptcy and Income

Changes are coming to the world of bankruptcy. If you need to know what is happening then pay attention now. Since March 2016 there have been changes to the Income Threshold amounts. This signifies that there are changes to just how much money you can keep when bankrupt. This is your net income after tax and child support (if applicable) are deducted. If youre in business when bankrupt then, of course, its also net (after tax) of business spending, which is commonly calculated annually.

Your net income may be regulated to take into account things like salary sacrifice and substantial superannuation payments etc. Your net income might also allow for more unusual costs incurred as a result of being employed. For example, if you are subjected to an unusually high amount of travel expenses to get to and from your job this can sometimes also be take into consideration.

Your bankruptcy trustee has to ascertain your real net income, according to the bankruptcy rules. The income threshold numbers are also per person and are set by the Government every March and September to allow for the movement in the cost of living.

What can my partner earn if I go bankrupt?

There is no limit to what your spouse/partner can earn. There are a few implications that need to be considered in some circumstances, but in most cases your partner is a completely separate legal entity and will not be impacted financially when you file for bankruptcy. Just as a word of warning – this could change if you have joint loans together, so be careful about the implications of that. If you are not sure just give us a call on 1300 818 575.

Who is considered a dependent?

This can be any person, of any age, that lives with you and earns less than $3,343 per year. If, in the case you have a child or children that you pay child support for and they dont live with you full-time, then you cannot claim these children as dependents.

What if my spouse or partner and I both need to go bankrupt?

If a couple need to both file for bankruptcy and you have no dependents then you can each earn $1,048.25 net. A practical way to understand it is the same income rules apply for each person individually.

Self Employment & Bankruptcy

Will I lose my small business if I go bankrupt?

The simple answer is – you dont have to but you do need to get the right guidance. Company insolvency laws are very involved and you need to tread carefully if you wish to continue to be self-employed.

You may already recognise that you can no longer be the director of a Pty Ltd Company if you are bankrupt. Even so, that doesnt inevitably mean you cant run your very own business and employ staff etc.

What if I have both Business and Personal Debts?

If you are a business owner and you have a combination of personal and business debts then its possible to have most, if not all, of the debts wiped out with bankruptcy. Remember this is a complicated process and requires special attention. The reality is, personal bankruptcy doesnt automatically imply business bankruptcy also.

Whether you run your business as a Sole Trader, Partnership, Company or Trust we can help guide you through your options. Feel free to call us on 1300 818 575 for a no obligation FREE consultation.

Should I put my company into liquidation?

Among the main reasons you may wish to consider liquidation as opposed to bankruptcy is because if you liquidate your company, it doesnt inevitably mean you have to go bankrupt. In Australia, businesses that become insolvent have a few options, such as liquidation, voluntary administration and so forth. If you need to know more call us on 1300 818 575.

What impact will bankruptcy have on my business?

There are restrictions for business owners that are bankrupt. For example, as a bankrupt business owner you can be in your own business as a sole trader only. For some business owners, bankruptcy can affect their ability to run the business because of the licensing issues. For example, a builder with a builders license cannot continue to use that license for the 3 years he or she is bankrupt.

There are other implications for business owners whilst bankrupt that need to be considered. If you need to know more about this please feel free to give us a call for a no obligation free consultation on 1300 818 575.

Isn’t it illegal to run a similar business after bankruptcy?

It could be. There are considerations when and if you declare bankruptcy as a business owner. You cannot run up heaps of debt in your business, then go bankrupt and then open the doors the next day like nothing has happened. There are laws in place to prevent that is called Phoenix companies rising up out of the ashes of an old company. Dont get overly stressed about what you can and cant do as a company owner; just get the correct advice by calling Bankruptcy Experts Adelaide today on 1300 818 575.